Mobile Remote Capture Provider Digiliti Rejects Urban FT’s $10.5 Million Bid

Digiliti Money Group Inc., a provider of mobile remote deposit capture services for banks, has rejected Urban FT Inc.’s offer to save the company from potential bankruptcy, Urban FT announced Tuesday.

Earlier in August, Digiliti said was considering “strategic options” that included a sale of the company or a Chapter 11 bankruptcy filing following revelations that it might restate its financials for 2016. Within days of that announcement, Urban FT said it made a “compelling offer” for Digiliti. Now, Digiliti, according to Urban FT, has rejected the offer. Neither Digiliti nor Urban FT responded to Digital Transactions News emails.

The deal would have provided Digiliti with a line of credit to take care of its capital requirements, make payroll, and maintain customer services with no interruption.

Digital-banking platform developer Urban FT said its offer valued Digiliti at $10.5 million. “For reasons not clear to Urban FT, [Digiliti], via its advisors at Lake Street Capital Markets, proposed alternate terms and stood firm on those terms, which Urban FT and its attorney considered unreasonable and unacceptable under the circumstances,” Urban FT said in a press release. “The board of [Digiliti] said [Digiliti] was not willing to negotiate its position and, in an email, noted that ‘We are too far off at this point’ for a deal to be concluded in the timeframe [Digiliti] is working toward.”

“The Digiliti business is a fundamentally good one, with good staff, good technology, and good clients,” said Kasey Kaplan, Urban FT president, in the release. “We will leave our offer on the table for acceptance by Digiliti until close of business on August 31.”

Kaplan said he hopes the Digiliti board considers Urban FT’s offer a fair, equitable, and reasonable one. Putting Digiliti into bankruptcy, would be a loss for “all of those stakeholders and would truly disrupt so many organizations that rely on Digiliti’s services every day.”